OPENING CALLS:
| Class III Milk Futures: | 4 to 6 Lower |
| Class IV Milk Futures: | 5 to 10 Lower |
| Butter Futures: | 2 to 3 Lower |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 2 Higher |
| Soybean Futures: | Mixed |
| Soybean Meal Futures: | $1 to $2 Higher |
| Wheat Futures: | 1 to 2 Higher |
MILK:
The increase in milk production in August was about as expected, but the increase in cow numbers was not. Lower milk prices have not increased culling to this point. That may increase in time as milk prices remain low and the income from beef-on-dairy calves is not sufficient to maintain cash flow. Milk output is not slowing, and cooler weather has increased cow comfort. Milk production is increasing in most areas of the country. Higher milk production and increasing cow numbers will ensure an abundant milk supply. This will keep bottlers and manufacturers busy and supply readily available.
CHEESE:
It is uncertain whether cheese buyers will hold back. The milk production report showed that the milk supply should remain plentiful, resulting in higher cheese production. The cold storage report will be released on Friday and is expected to show a lower decrease in inventory than usual due to increased production and steady demand.
BUTTER:
It is uncertain where the butter price will find support. Lower prices have not stimulated demand sufficiently to tighten supplies. Strong butter production earlier in the year resulted in higher levels of butter being put into storage. Slower demand and continued butter production have left an abundance of butter available to the market.
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